In a report published on Monday, the think tank said too many families faced the current crisis already struggling with low incomes, scant savings and ungenerousAdjusted for inflation, the disposable income of a typical household grew just 0.7% annually in the 15 years before the Covid pandemic, and the poorest fifth of the population were no better off at all, theperformance that has depressed pay levels and entrenched decades of inequality.
“To do that, we must address our failure to raise pay and productivity levels, strengthen our social safety net, reduce housing costs and build on what we’ve done well – such as boosting employment for lower-income households.” The foundation was not universally critical, however. Employment and hours also mattered for income growth, and on that score the UK had a good record recently, it said.